Yeah, I don't know either

Why do the DC cab drivers think that metering is a prelude to domination of the market by big companies? Matt wants to know. So do I. It doesn't seem to make sense, but they probably know their market a lot better than I do. Anyone have any idea?

Comments

The current meter rates are inefficient to the point where lowering them would substantially cut demand. Since (I believe) no one can currently undercut them, there is little incentive to enter the market.

Using metering would lower the prices for most trips, with a higher volume demanded at that price. This is where corporations come in, since they are probably more efficient than the smaller operations. There would now be an incentive to enter the market to pick up the rides the existing companies cannot provide. Over time, since they are more efficient, the bigger companies will drive the smaller companies out of the market.

Admittedly this doesn't explain why the big companies didn't take over the market to begin with; I really don't know enough of the history to see if that is consistent with this theory.

Because DC has a huge number of lowish-wage (or no-wage) residents who don't live there for extended periods of time (no cars) and live close, but not really close, to where they work, it seems like a small shift in the price of a short ride would lead to a lot more people buying rides. Just to backup my earlier claims.

Posted by Psychohistorian | October 30, 2007 12:38 AM

If I had to guess, I would think that DC Cabbies would oppose the meters due to:

1. The cost of the meters
2. No longer being able to scam people confused by the zones. Much more difficult to scam someone when they can watch the meter count up as the trip goes on.

Posted by Steven | October 30, 2007 4:29 AM

Psychohistorian is wrong. There are no current meter rates in DC because there currently are no meters. The drivers I talk to don't like them because they won;t be able to take multiple passengers, as they are currently allowed to do with the zone system. My guess is that some of them will also lose the ability to overcharge tourists like many do now.

Posted by policywonk | October 30, 2007 5:38 AM

Metering will enable better controls by capturing more information in automated systems. This information is likely to be relatively more valuable to larger organizations than to smaller ones.

Posted by henry evans | October 30, 2007 9:26 AM

Federal Government employe, travel some on business. grew up in Philadelphia, where there were always meters. Traveled to Europe in the late 90's where cabs took credit cards! Cabs were clean. It boggled the mind.

Hadn't had much ocassion to travle to DC and use cabs. We usually get a car from the motor pool, rent a car or drive personal vehicles. Job change required me to travel there on Amtrak and catch a cab at union Station. No meter? You've got to be joking. My trip across the river to Crystal City ranged from $12 to $18 bucks, a pretty huge spread. I guess they interpreted the zones differently? I always felt ripped off. Get meters, join the 21st century.

I don't think having meters precludes cabs from taking multiple passengers - at least it doesn't here in Philly.

Zones = scam.

Posted by fixedgear | October 30, 2007 9:55 AM

Traveled to Europe in the late 90's where cabs took credit cards!

Really? Huh. Whenever I've been to the UK, the cabs have not taken credit cards.

Posted by John Thacker | October 30, 2007 10:34 AM